Summary In today's episode, I examine the challenges of building AI systems for stock market prediction. Here's what this means for you. You can avoid the pitfalls of chasing market sentiment by using AI to build specialized expertise in stable, fundamental sectors. You'll also learn these concepts: why the stock market functions as a lagging…
Almost Timely News: 🗞️ The ROI of AI (2024-08-04) :: View in Browser 👉 Register for my upcoming free webinar, Generative AI for Hospitality! Content Authenticity Statement 100% of this week’s newsletter was generated by me, the human. I wish I could have written the opening piece with AI, but I needed to think it…
In this YouTube video, Christopher Penn explores the question of why the banking system is such a mess. He explains that banking has always tried to find ways to be profitable and that the money is made through investing rather than purely being a depository institution. However, this leads to a commingling of two things…
Summary In today's episode, I explore why the banking system is such a hot mess and why we don't simply deposit and withdraw money directly from the U.S. Treasury. Here's what this means for you. You gain a clear understanding of how fractional reserve lending and the commingling of deposits with risky investments create the…
Summary In today's episode, I walk through the eight economic indicators the National Bureau of Economic Research uses to determine whether a recession is underway and explain why most of them currently point to stability rather than an imminent downturn. Here's what this means for you. You'll gain a clearer framework for cutting through the…
Summary In today's episode, I walk through the student loan forgiveness debate from the perspective of someone who spent seven years inside the financial aid industry. Here's what this means for you. You'll understand why blanket forgiveness is a sweetheart deal for banks and creates moral hazard while ignoring the root cause of runaway tuition…
Michelle asks, “If you could give one piece of advice to small businesses as they prepare for the recovery, what would it be?” This is more of an economics question than a marketing one. In the Great Recession, the single most important thing for any business was cash flow. Positive cash flow meant you stayed…
Summary In today's episode, I answer Michelle's question about the single most important piece of advice for small businesses preparing for economic recovery. Here's what this means for you. You gain a clear framework for understanding cash flow, margins, and how to keep your business alive when revenue drops. You'll also learn these concepts: why…
Jennifer asks, “How do I know, based on my analytics, when it’s time to change tactics?” For questions like this, we look outside of marketing to a discipline that is supremely well-practiced in changing tactics as soon as indicators go sour: financial trading. There are hundreds, if not thousands, of techniques for quickly spotting trends…
Ashley asks, “Assuming everyone adopts AI what will separate finance professionals that are the most successful from everyone else? What will they do differently?” We review the core promises of AI, what AI is and isn’t good at, and what AI is bad at today with a focus on finance professionals. This is how to…
